DepoMed boosts forecast thanks to Nucynta

JoshBeckerman

DepoMed Inc. has increased its 2015 guidance for product sales and adjusted earnings for the second time in as many quarters after a strong third-quarter performance by its recently acquired Nucynta painkiller.

In April, DepoMed bought the U.S. rights to Nucynta from Johnson & Johnson unit Janssen Pharmaceuticals Inc. for $1.05 billion. That deal positioned DepoMed as a much larger company focused on pain and neurology.

In after-hours trading, DepoMed shares rose 6.7% to $21.45.

DepoMed has repeatedly rejected an unsolicited buyout approach from Horizon Pharma PLC. Horizon made an all-stock offer in a May 27 letter and went public with an increased proposal in July.

DepoMed now expects product sales of $336 million to $348 million this year, compared with a July projection of $320 million to $340 million. It increased adjusted earnings guidance to $58 million to $66 million from a previous range of $40 million to $50 million.

For the quarter ended Sept. 30, DepoMed posted a loss of $11.8 million, or 20 cents a share, compared with net income of $6.5 million, or 11 cents a share, a year earlier. Earnings excluding items were 33 cents a share.

Net product sales rose to $104.7 million from $30.6 million, while total revenue increased to $104.9 million from $51.5 million.

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